BYD: EU’s Combustion Engine Delay Splits Rivals, Boosts China’s EV Dominance

The European Commission has reversed its ambitious goal to ban combustion engines by 2035, a significant development as 2025 draws to a close.

From 2035, automakers can continue selling internal combustion engine (ICE) vehicles, provided they meet stringent CO2 emission reduction targets. While this might appear favorable for the automotive sector, the positive reception in China suggests a different dynamic.

For every euro European brands allocate to developing plug-in hybrids, hybrids, and combustion engines, it’s a euro not spent on electric vehicles. Meanwhile, Chinese manufacturers are committed to an all-electric strategy, with PHEVs/EREVs as a secondary focus.

This assessment comes from Stella Li, Vice President of Build Your Dreams (BYD) and head of the Chinese brand’s European operations. Li, who leads the world’s largest producer of plug-in vehicles and now pure electric vehicles ahead of Tesla, views the European Commission’s decision favorably.

Li’s perspective aligns with BYD’s strategic interests. She believes the decision will negatively impact European manufacturers while benefiting Chinese brands, primarily due to investment allocation.

BYD argues that extending the lifespan for Western manufacturers to develop combustion engines will compel them to divide their R&D efforts and investments. Chinese brands, conversely, will continue to channel nearly all their investment into electric vehicles.

“Europe is pushing and then delaying the Green Pact, and for many automotive companies, this impacts R&D,” Stella Li stated. “Their spending must be divided in two; you never have enough money for that, and you never master any area. How can they compete with a company (like BYD) that only believes in one direction? For the past almost 30 years, our dream has always been electrification. We invested all the money in a single direction.”

BYD’s European chief clarified, “We don’t care about the revisions or delaying the combustion car ban. We can use plug-in hybrids to replace combustion cars with much better performance, much lower fuel consumption, and smart technology.”

Furthermore, Europe’s decision to establish a new M1E category, aimed at promoting the production and sale of affordable B-segment electric cars, also benefits BYD. The Chinese brand, which has already entered Japan’s kei car segment, plans to commence vehicle manufacturing in Europe soon.

This local production is crucial for BYD to avoid import tariffs on electric vehicles entering the European market, opening avenues for manufacturing urban electric cars that meet EU specifications. BYD also plans to significantly expand its presence across the continent, aiming to double its sales points to 2,000 centers next year.

Source: Auto Express